- An initial coin offering investor starts a sell-off, likely expecting a drop.
- Ethereumโs founder unearthed a solution to the high transaction fees.
- Etherโs (ETH) dance around $2.5K wipes out $46M in leveraged longs.
As the largest Proof of Stake (PoS) blockchainโs native crypto suddenly slumped below $2,500, the fluctuant Ethereum price action raised eyebrows among crypto traders. Even though Ether rebounded to $2,528 a few hours later, the 6% price drop on the evening of October 23, 2024, can be traced back to Ethereumโs fundamentals.
Vitalik to Solve Etherโs High Fee Issues?
Social media channels, especially X, are abuzz with complaints about the rapidly growing Ethereum PoS transaction fees. Ethereumโs Vitalik Buterin has addressed this concern with a new fourfold calculation for reducing ETH transfer fees.
Ethereumโs outspoken founder claimed to have found a solution to increase the crypto networkโs transaction speed by 1.5x to stay competitive in the game. Vitalik named specific Ethereum Virtual Machine (EVM) opcodes that could be modified to reduce default gas costs.
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This comes when Solana (SOL) outpaced ETH in daily collected gas fee revenue, as Solana became the home of meme coins.
Ancient Ethereum Whale Dumps 3K ETH
As Ethereumโs price continues to tango with the $2,500 key support level, one very early Ethereum investor has offloaded 3,000 ETH tokens for $7.64 million this morning. This smart money investor originally obtained 254,908 Ethereum coins for just $79,000.
The initial coin offering (ICO) netted this Ether whale a hefty $646 million profit. According to real-time blockchain data, the whale holds the remaining 37,070 ETH tokens after todayโs 3K sell-off, amounting to $7.64 million.
While this amount might not amount to anything in the grand scheme of things, the concerning trend underlies that the same ICO investor sold 7K ETH on July 1st, followed by a 15% price drop and a wave of long position liquidations. The surge in ETH long liquidations today has already wiped out $46 million.
DailyCoin evaluated Ethereumโs Chaikin Money Flow (CMF) on the 1-hour charts to assess if the selling sentiment is shared among other large investors. As Ether traded at $2,528, the CMF index flashed a positive number at 0.03, alluding to the fact that many large altcoin investors are accumulating ETH positions, acutely aware of the ongoing market dip.
On the Flipside
- The sharp Ether price drop on October 23 is heavily ascribed to the negative flows in Ethereumโs exchange-traded funds (ETFs).
- Grayscaleโs Ethereum Trust slimed by 11,147 ETH, while the overall ETH ETF market lost over $12 million in a trading day.
Why This Matters
Tracking early holder moves provides a better understanding of market timing, the coinโs price dynamics, and future prospects.
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